VMware Cuts ‘Small’ Number of Jobs as Part of Business Realignment

VMware cut a “small” number of employees this week, a spokesperson told SDxCentral. The company won’t disclose how many jobs were impacted.

“We can confirm that there has been a small reduction in force at VMware this week,” the spokesperson said in an email. “Workforce rebalancing is a continual activity across VMware’s businesses and geographies to ensure that resources are aligned with business objectives and customer needs. We continue to recruit in areas of strategic importance for the company.”

The company has increasingly focused on building up its cloud services — including VMware Cloud on AWS — over the past couple of years. The hybrid cloud service allows VMware customers to run their workloads in the Amazon Web Services (AWS) public cloud using the same VMware software stack.

NFV deployments have boosted the company’s revenue as well. VMware reported revenue growth of 11 percent year-over-year, to $1.98 billion, during its fiscal 2018 third quarter. On the earnings call, CEO Pat Gelsinger said more than 350 million subscribers are running some service over a VMware-hosted NFV infrastructure.

VMware also continues to be a significant money maker for parent company Dell Technologies. The parent company reported a 21 percent revenue increase compared to last year in its third quarter of fiscal 2018 earnings, with VMware’s business accounting for 32.7 percent of Dell Technologies’ revenue.

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Jessica is a Senior Editor, covering next-generation data centers, security, and software-defined storage at SDxCentral. She has worked as an editor and reporter for more than 15 years at a number of B2B publications including Environmental Leader, Energy Manager Today, Solar Novus Today and Silicon Valley Business Journal. Jessica is based in the Silicon Valley.

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